South African group Blue Label Telecoms is expecting headline earnings per share (HEPS) to rise by up to 4 percent for the six months ended 30 November 2020. In a trading update, Blue Telecom said basic earnings a share (EPS) are set to increase by 41 percent to 45 percent year-on-year, to a range between ZAR 0.49 and ZAR 0.51. HEPS are expected to be between ZAR 0.41 and ZAR 0.42 apiece, an increase of 0-4 percent from ZAR 0.40 a year earlier.
Core HEPS are expected to be between ZAR 0.42 and ZAR 0.44 compared with ZAR 0.43 in the six months to 30 November 2019. The core headline earnings amounted to ZAR 376 million, of which ZAR 351 million was related to continuing operations and ZAR 25 million to discontinued operations.
Cash flow generated by the group strengthened, with cash generated from operating activities amounting to ZAR 970 million in the current period. Excluding non-recurring income pertaining to foreign exchange gains of ZAR 22 million, core headline earnings from continued operations was ZAR 329 million, equal to core HEPS of ZAR 0.37.
Blue Label says the increase in basic EPS was primarily due to the disposal of the group's 47.56 percent interest in Blue Label Mexico, as well as a positive movement after a negative contribution a year earlier by the retail division of the WiConnect stores, with partial recoupment of losses in the current period. The company, which is also the largest shareholder of Cell C, says the performance of the Blue Label Group remains resilient in an adverse economic environment.
